FTX Sues Sam Bankman-Fried’s Parents

Crypto News– The embattled cryptocurrency exchange FTX has taken legal action by filing a lawsuit against Allan Joseph Bankman and Barbara Fried, the parents of Sam Bankman-Fried. FTX and Alameda Research, both debtors in the case, have embarked on this legal journey with the objective of recovering millions of dollars that were allegedly transferred and misappropriated by Sam Bankman-Fried’s parents during the earlier stages of FTX’s existence.

FTX Sues Sam Bankman-Fried’s Parents

This legal dispute has roots in a previous accusation made by FTX lawyers earlier this year, in which they asserted that Sam Bankman-Fried had used gifted money to his father to fund his legal defense. According to a court filing on September 18, FTX Trading is now seeking damages from Allan Joseph Bankman and Barbara Fried, not only for direct transfers but also for indirect ones that involved FTX and its affiliated entities.

It is worth noting that FTX Group was once characterized as a ‘family business,’ operated to serve the interests of a select group of insiders. Bankman, in his capacity as an advisor, played a pivotal role in perpetuating what is described as a ‘culture of misrepresentations and gross mismanagement.’ He was even implicated in covering up allegations against the firm and its insiders.

FTX Pursues Recovery of Millions from the Parents of Sam Bankman-Fried

Allegations suggest that Sam Bankman-Fried’s parents, Bankman and Fried, siphoned off millions of dollars from FTX Group for their personal gain. FTX is determined to hold them accountable for their alleged misconduct and to recover assets on behalf of creditors.

The lawsuit against Bankman and Fried encompasses 12 counts, including charges of fraud, aiding and abetting breaches, and breaches of fiduciary duties. The debtors have also presented substantial evidence indicating fraudulent transfers for personal enrichment, political contributions, and the protection of company insiders.